Some families decide that buying a small house near Minnesota State University, Mankato makes more sense than renting. The student gets a stable place to live, often with a roommate or two, and the family owns property in a busy college town. The insurance side of that plan, though, is easy to get wrong.
Myths and Facts About Insuring a Student House
Myth: A regular homeowners policy covers the house.
Fact: Homeowners policies are generally written for the place where the policyholder actually lives. If the parents live elsewhere, the insurer may consider the house non-owner-occupied and recommend a dwelling or landlord policy instead. Telling your agent exactly who lives there is the most important step.
Myth: Charging roommates rent doesn’t change anything.
Fact: Once roommates pay rent, the house is usually treated as a rental property. That can affect the type of policy, and the City of Mankato’s rental licensing rules may also come into play. Check with the city before move-in.
Myth: The house policy covers everyone’s belongings.
Fact: Dwelling and landlord policies focus on the building. Your student’s belongings may have limited coverage through your own homeowners policy if they qualify as a resident student, but that coverage often has a lower limit. Roommates typically need their own renters insurance.
Myth: Liability is included automatically.
Fact: Some dwelling policies don’t include personal liability unless it’s added. For a house full of college students and their guests, that’s a coverage piece worth confirming in writing.
Setting It Up the Right Way
The right structure depends on whose name is on the title, who lives there, and whether rent is collected. An attorney or tax professional can help with the ownership side, while an agent focuses on matching the policy to how the house is actually used. Our post on unexpected risks in Minnesota homes covers other issues worth reviewing.
Insurance Services Plus in Minnesota works with families in Lake Crystal, Mankato, and across Blue Earth County. Before closing on a student house, reach out to Insurance Services Plus in Minnesota to review the options.
